Migration rises to new annual record

New Zealand migration rose to a new annual record in April, as more students arrived from India and China and fewer locals left for Australia.

The country had a net gain of 56,800 migrants in the year through April, well ahead of the 34,400 gain in the year earlier period, Statistics New Zealand said. Migrant arrivals were 16% ahead of the year earlier period, while departures declined 11%, the agency said.

New Zealand annual migration has broken records for nine consecutive months as people are lured by the nation's brighter economic prospects. That's helping stoke economic activity, pushing up demand for housing in Auckland, the nation's largest city, and underpinning vehicle sales while reducing pressure on wage inflation by boosting the supply of labour.

"We expect that net immigration will remain strong over the coming year, approaching a net inflow of 60,000," Westpac Banking Corp New Zealand senior economist Satish Ranchhod said in a note.

"The weak Australian economy is keeping New Zealanders at home. At the same time, New Zealand's strong economic outlook is continuing to draw in foreign workers in historically very large numbers."

Still, Ranchhod noted the monthly increase in net immigration appeared to have stalled, with net immigration falling to a seasonally adjusted 4740 in April from 4990 in March as the arrival of non-New Zealand citizens eased off.

A decline in migrant departures reflects fewer people leaving for Australia, where the economic prospects are weaker following a slowdown in the mining industry. New Zealand had a net inflow of 100 migrants from Australia in April, the first month the country has had a net gain from Australia since 1991. On an annual basis, the country had a net loss of 1900 people to Australia in the year through April, the smallest since 1992.

The gain in migrant arrivals was driven by India, with a net gain of 12,200 people in the year through April, followed by 7800 from China, 4600 from the UK and 4000 from the Philippines. About three-quarters of migrants from India and half of migrants from China arrived on student visas, the agency said.

(BusinessDesk)